Which of the following statements is correct when Treasury bills yield 7.5% and the market risk premium is 9.5%?
A. The S&P 500 would be expected to yield about 8.50%.
B. The S&P 500 would be expected to yield about 9.50%.
C. The S&P 500 would be expected to yield about 12.68%.
D. The S&P 500 would be expected to yield about 17.00%.